Local bank president resigns

Published: Friday, March 1, 2013 at 05:06 PM.

Bank struggles

Alliance Bank and Trust has struggled in recent years under the weight of bad loans, which prompted federal regulators to impose restrictions in February 2008.

As part of a consent order with the FDIC, the bank was ordered to review its management and resolve the problem loans. Such orders significantly increase the role of regulators in the bank’s operations, though they don’t indicate the bank is in imminent danger of failing.

Alliance Bank was ordered to do a number of things, such as maintain higher minimum capital ratios, create a plan to resolve questionable loans and write down loans that were doubtful for collection. It has not been able to pay dividends or bonuses without approval, among other restrictions.

Shovelin said all of that has actually been very good for the bank.

“I’ve found that under the consent ruling with the FDIC and the state bank commission, the regulators have been a real asset to us through that process,” he said. “I think it’s helping the bank and I’m confident things are going to work out just fine. I’m very confident with where the bank is going.”

Dan Ayscue, president and CEO of Alliance Bank and Trust, resigned from the post Tuesday. Ayscue had been in the position since 2009.

He could not be reached for comment this week, but he told his bank colleagues that he was “pursuing other business interests,” said Alliance Bank CFO Roger Mobley.

The bank operates branches in Shelby and Kings Mountain and two in Gastonia, where it is headquartered.

Wayne Shovelin, who has served as chairman of the bank’s board of directors since it was chartered in 2004, has taken over as interim president and CEO.

“Dan was one of the initial officers of the bank when we started in 2004. He’s been very successful,” Shovelin said Thursday, reached by telephone from Florida. “He just told us he’s decided to take on a different venture and I totally understand. He didn’t want to go into detail at the time.”

Bank struggles

Alliance Bank and Trust has struggled in recent years under the weight of bad loans, which prompted federal regulators to impose restrictions in February 2008.

As part of a consent order with the FDIC, the bank was ordered to review its management and resolve the problem loans. Such orders significantly increase the role of regulators in the bank’s operations, though they don’t indicate the bank is in imminent danger of failing.

Alliance Bank was ordered to do a number of things, such as maintain higher minimum capital ratios, create a plan to resolve questionable loans and write down loans that were doubtful for collection. It has not been able to pay dividends or bonuses without approval, among other restrictions.

Shovelin said all of that has actually been very good for the bank.

“I’ve found that under the consent ruling with the FDIC and the state bank commission, the regulators have been a real asset to us through that process,” he said. “I think it’s helping the bank and I’m confident things are going to work out just fine. I’m very confident with where the bank is going.”

Search for a new leader

Alliance Bank has yet to inform its 630 shareholders of the change, but will be doing so soon in a newsletter and annual report, Shovelin said.

A newly appointed committee of board members will oversee a search for a new president. Shovelin said recent acquisitions and other developments in the banking industry and made it a favorable time to begin such a process.

“There’s a wealth of talent out there. It’s a good time for a bank to be looking for a new CEO,” he said. “It’s always a challenge to do that, but I think we’ll be successful.”

You can reach Michael Barrett at 704-869-1826 or twitter.com/GazetteMike.